The Federal Government has introduced a fresh set of measures aimed at strengthening financial discipline across Ministries, Departments and Agencies (MDAs), placing new limits on reimbursable imprest, restricting reimbursement frequency and tightening oversight of public funds.

The new directives are contained in the 2026 Annual General Imprest Warrant signed by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, and conveyed through a Federal Treasury Circular issued by the Office of the Accountant-General of the Federation.

The circular, dated June 3rd, 2026, was signed by the Accountant-General of the Federation, Shamseldeen Ogunjimi. It authorises accounting officers across the executive, legislative and judicial arms of government to approve funds for eligible imprest holders while establishing clear spending thresholds and stricter compliance requirements.

Under the revised framework, ministers will be entitled to a maximum reimbursable imprest of N700,000, while permanent secretaries and directors-general will be limited to N500,000.

Directors and heads of departments will be eligible for a reimbursable imprest ceiling of N300,000, while heads of formations in states and other authorised imprest holders will be restricted to a maximum of N100,000.

According to the Office of the Accountant-General, the new measures are in line with the provisions of Financial Regulation 1003 and form part of broader efforts to promote accountability and prudent management of public resources.

The circular stated: “All Accounting Officers in the three arms of government, including Ministries, Extra-Ministerial Offices and Agencies, are hereby authorised to approve funds to eligible imprest holders.”

It added that “the limit of reimbursable imprest shall be” N700,000 for ministers, N500,000 for permanent secretaries and directors-general, N300,000 for directors and heads of departments, and N100,000 for heads of formations and other authorised holders.

In a significant move aimed at curbing abuse and strengthening expenditure controls, the Federal Government also introduced restrictions on how frequently imprest can be reimbursed.

According to the circular, standing imprest accounts are expected to be reimbursed only once every quarter under normal circumstances.

“The frequency of reimbursement of any standing imprest shall normally be once in a quarter and shall not exceed twice in a quarter where the need arises,” the circular stated.

The directive is expected to encourage stricter planning and monitoring of operational expenses while reducing opportunities for excessive or unnecessary requests for cash advances.

The government further directed all accounting officers and expenditure controllers to ensure that purchases exceeding N1 million are processed through formal contract awards in accordance with existing procurement regulations.

“All local procurement of stores and services costing above N1,000,000 shall be made only through the award of contracts, except as otherwise provided by the Public Procurement Act,” the circular noted.

The directive reinforces the government’s commitment to ensuring that procurement processes remain transparent, competitive and compliant with established legal frameworks.

As part of efforts to strengthen monitoring and accountability, all self-accounting ministries, extra-ministerial departments and agencies have been directed to submit detailed returns to the Office of the Accountant-General within 30 days of the circular.

The returns are expected to provide information on the retirement of imprest allocations granted in 2025 as well as comprehensive lists of approved imprest holders for 2026 and their operational locations.

The requirement is intended to improve record-keeping and enable closer monitoring of the use of public funds across government institutions.

The government also directed all imprest holders to operate dedicated operational bank accounts in line with the Federal Government’s electronic payment policy.

Under the new arrangement, monthly reports showing funds paid into the accounts and documentary evidence of the retirement of such funds must be submitted to the Office of the Accountant-General.

The measure aligns with ongoing efforts to reduce cash-based transactions and enhance transparency through digital financial management systems.

To ensure strict adherence to the new guidelines, the Accountant-General warned that the Treasury Inspectorate Department would conduct routine inspections throughout the financial year.

The inspections will focus on compliance with imprest regulations and the proper management of cash advances across federal institutions.

The circular warned that any violation of the regulations would attract sanctions.

“Any breach of the regulations in the operation of imprest accounts shall lead to the withdrawal of the right to issue any imprest by the affected accounting officer, and appropriate sanctions shall be applied accordingly,” the circular stated.

The directive was addressed to a broad range of senior government officials and institutions, including the Chief of Staff to the President, ministers, permanent secretaries, heads of extra-ministerial agencies, service chiefs, the Inspector-General of Police, chairmen of federal commissions, anti-corruption agencies and heads of revenue-generating institutions.

The widespread circulation underscores the government’s determination to ensure uniform compliance across the federal public service.

Imprest is a cash advance granted to public officers to cover routine and urgent official expenses that may not require the full government procurement process.

Under Nigeria’s Financial Regulations, officers who receive imprest are required to properly account for all expenditures with supporting documents and retire such advances before fresh approvals can be granted.

Over the years, audit reports and oversight institutions have repeatedly raised concerns over weak documentation, delayed retirement of advances and instances of misuse of public funds linked to imprest management.

Successive administrations have introduced measures aimed at strengthening financial controls within the public sector.

In recent years, the Federal Government has expanded the use of electronic payment systems, tightened treasury controls through the Treasury Single Account (TSA) policy and strengthened compliance requirements for MDAs as part of broader public financial management reforms.